Make money from Bitcoin
When it comes to crypto currency and bitcoin, there are a lot of ways to make money. In this complete guide, we will go over some of the most popular and effective methods to help you get started.
Simply there are three ways to make money out of Bitcoin which is to buy low and sell high. Another way is to mine for bitcoins, another way is to provide goods or services in exchange for bitcoins.
Bitcoin and other crypto currencies are digital currency which is primarily used for investing and trading to get a profit out of it. It is kind of a big deal to someone who don’t know how does it work or to make a profit out of it.
But in this article you can understand the clear picture of how it works and to make a profit out of bitcoin or any other crypto currencies.
What is Bitcoin?
Bitcoin is a digital asset and a payment system invented by Satoshi Nakamoto. Transactions are verified by network nodes through cryptography and recorded in a public dispersed ledger called a blockchain. Bitcoin is unique in that there are a finite number of them: 21 million.
Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
How does it work?
Bitcoin works as simple as how a blockchain works and it helps to eliminate intermediaries while buying and selling. By using blockchain such as Bitcoin, you have ignored transaction costs from intermediaries.
Blockchain taking advantage of the CPU computing power by cryptographic trust and which is built into bitcoin through a wallet, a public key and a private key in the program.
Public key is public like your receiving address for getting bitcoin from others such as bank account number. Private key is a digital signature via which a person can send Bitcoins and it should be held secretly as the name suggests it is private.
Bitcoin transaction is verified by a mining node and included in a block of transaction that is recorded on the blockchain, This is one of the main aspects of bitcoin and cruptocurrencies from some other assets, where there is centralized exchange like the stock exchange which all transactions need to be routed or validated.
It is also important to keep your Bitcoins safe and secure, and there are a few things you can do to make sure that your Bitcoins are protected such as enabling two-factor authentication for your Bitcoin wallet.
To get started with Bitcoin
For getting started with bitcoin, you need a crypto currency wallet from any of the wallets available online, such as trust wallet, Binance or any that supports bitcoin, almost every wallets nowadays have listed bitcoin.
A Bitcoin wallet is a digital wallet that stores your Bitcoin balance and allows you to send and receive Bitcoin transactions. There are many different types of Bitcoin wallets, each with its own set of features and security measures.
To choose the best Bitcoin wallet for you, you’ll need to consider your own needs and preferences because of the regional restrictions for exchanging money.
I suggest Binance wallet because that supports buying and selling of crypto currency through P2P which is helpful for users who are non USD, such as India, where you need regional wallets such as Wazirx, Coin DCX, Coinswitch (For Indian Users)
You need to find your closest regional wallets to start with for buying of Bitcoin directly. But Binance is according to me the most used wallets for transactions such as P2P and you can use these P2P service in almost every countries.
Buy low and Sell high
The simplest way to make money from bitcoin is buying bitcoin, holding until it goes up, then sell. Your investment increases as bitcoin prices keep increasing.
Even It is the direct and simplest method of making profit from bitcoin, there are risks such as constant change in value of bitcoin. Because the behaviour of any crypto is highly volatile.
To make money from bitcoin, It is not as consistent as stock trading because the market doesn’t tend to repeat or stable as equity or stock price.
There are a lot of crypto holders who has invested in bitcoin at lower prices on earlier days of crypto and became rich with just a few bitcoins in their wallets.
Another way to make money from bitcoin is through day trading. Day trading involves buying and selling bitcoin on the same day, taking advantage of short-term price movements, Its also called Intraday trading.
This method requires a bit more knowledge and skill than buying and holding, but it can be highly profitable.
Bitcoin lending is similar to traditional lending, but instead of lending money, you lend your bitcoin. This can be done through peer-to-peer lending platforms, which connect borrowers and lenders directly. Lenders earn interest on their loans, while borrowers get the bitcoin they need without having to buy it outright.
Read this article to know more about best bitcoin Lending platforms: Top 10 Crypto Lending Platforms with the Best Interest Rates
Bitcoin faucets are websites, apps or channels that give away small amount of bitcoin for completing tasks and captcha. It might be a small amount, but that is the simplest way of getting started with bitcoin.
Bitcoin faucets are one of the safest way to start with, because there aren’t any risks involved as the investment is absent in this scenario. This is probability and luck based – “If you get it, you have it”.
Read my post about telegram chanels and faucets from here: How to make $100 weekly with telegram Airdrops and Giveaways
How to mine Bitcoin?
If you’re interested in mining Bitcoin, there are a few things you need to know.
• First, you need to have a good understanding of what Bitcoin is and how it works.
• Second, you need to have a strong computer with a good graphics card.
• Third, you need to join a mining pool.
• Fourth, you need to have the right software.
• Fifth, you need to be patient!
Bitcoin mining is actually the process of using computer power to solve complex mathematical problems in order to validate transactions on the bitcoin network. As a reward for their work, they receive newly created bitcoins. While mining can be a highly profitable endeavor, it requires a significant investment in equipment and electricity.
There are risk factors in mining as well, You can’t expect to mine a bitcoin soon with the setup, Even though you set the server at high cost, you can’t expect the mined bitcoin can cover those costs.
It is also a flip and win situation where there are chances you get a decent amount of bitcoin or the server costs overcoming the price of bitcoins you mined.
Provide goods or service
You might have seen this as well, there are hundreds of online or offline service or goods providers accepting cryptocurrencies such as bitcoin instead of real money.
Accepting bitcoin as your payment can be very profitable. Because the value of Bitcoin might increase which leads to making more money by using bitcoin as payment.
The opposite too can happen, that is a risk involved in the bitcoin payment. If you are comfort selling the bitcoin at the time of receiving the bitcoin, there might not be a penny of loss, but if you proceed with holding the bitcoin, the risk is up to you.
It’s worth noting that all of these methods to make money from bitcoin comes with their own risks and rewards. Before you invest any money in bitcoin, it’s important to do your research and understand the potential risks and rewards involved. It’s also a good idea to consult with a financial advisor to make sure that bitcoin investment is appropriate for your financial situation.
In summary, bitcoin has the potential to be a highly profitable investment, but it’s important to understand the risks involved and to invest only what you can afford to lose. In short, If you have money that worth losing which is not a part of any of your financial plan, go for with it.